Tag: alcohol

Marijuana Legalization Is A ‘Significant Threat’ To Alcohol Industry Because People Substitute Cannabis For Beer And Wine, Analysis Finds

Financial analysts say they expect the expansion of the marijuana legalization movement will continue to post a “significant threat” to the alcohol industry, citing survey data that suggests more people are using cannabis as a substitute for alcoholic beverages such a beer and wine.

A report from Bloomberg Intelligence (BI) projects that slumping sales of wine and spirits “may extend indefinitely,” which will “stem largely” from the increased consumer access to “legal cannabis,” as well as rising popularity of made-to-go drinks, for example.

They estimated that the combined influence of cannabis access and shifts in consumer demand for certain alcoholic product types accounts for a 16 percent share valuation discount offered by the beverage company Constellation Brands, which owns major brands including Corona, Modelo, Pacifico and Casa Nobel Tequila.

“The use of cannabis among consumers is on the rise, and we believe it’s being substituted for alcoholic beverages” based on an August 21 survey from BI involving 1,000 adults, it said. “We also anticipate that increasing US consumer access to recreational marijuana will be a significant threat to all alcoholic drinks, particularly beer and wine, given their lower price points relative to liquor.”

According to the survey, nearly half of respondents reported using cannabis as an alcohol substitute at least once per week. Additionally, 22 percent said they use marijuana more often than alcohol.

Meanwhile, a multinational investment bank similarly said in a report late last year that marijuana has become a “formidable competitor” to alcohol, projecting that nearly 20 million more people will regularly consume cannabis over the next five years as booze loses a couple million drinkers. It also says marijuana sales are estimated to reach $37 billion in 2027 in the U.S. as more state markets come online.

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Psychedelics Have ‘Demonstrated Potential For Treating Drug Addiction’ And Alcoholism, New Research Shows

Two new studies on psychedelics and alcoholism—including one with contributions from a top federal drug official—offer hope for new ways to treat alcohol use disorder (AUD).

One says a single dose of psilocybin “was safe and effective in reducing alcohol consumption in AUD patients,” while the other concludes that classic psychedelics like psilocybin and LSD “have demonstrated potential for treating drug addiction, especially AUD.”

The first study looked at 10 treatment-seeking adults “with severe AUD,” according to a preprint version of the research published online at Research Square. After a single 25 milligram dose of psilocybin, “alcohol consumption significantly decreased” during a 12-week period, the team found.

Coauthored by National Institute on Drug Abuse (NIDA) Director Nora Volkow—in her role at the National Institute on Alcohol Abuse and Alcoholism’s neuroimaging laboratory—along with 10 researchers at the University of Copenhagen, in Denmark, the open-label study found that most participants craved alcohol less and consumed fewer drinks following treatment with psilocybin.

“Participants reported a decrease from baseline to week 1 in alcohol craving,” the paper says—a decrease that was sustained four weeks and 12 weeks after the psychedelic was administered. “Further, participants reported an immediate change from baseline to week 1 in self-efficacy, i.e. confidence in the ability to abstain from alcohol.”

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Major Alcohol Industry Group Pushes Congress For ‘Critical Action’ To Regulate Consumable Hemp Products, Rather Than Ban Them

A major alcohol industry association is calling on congressional leaders to create a regulatory framework for hemp-based intoxicating cannabinoids—rather than impose an outright ban as is proposed under a large-scale agriculture bill that’s advancing in the House.

In a letter sent to House and Senate Agriculture Committee leaders on Wednesday, Wine & Spirits Wholesalers of America (WSWA) urged “critical action to ensure that intoxicating hemp products sold across the country are safe for consumers” as lawmakers work to advance the 2024 Farm Bill.

“We strongly advocate for clear federal rules and regulations that define intoxicating hemp compounds and to grant states the authority to regulate these products within their borders,” the alcohol trade association said.

The letter comes about a week after the House Agriculture Committee approved an amendment to the 2024 Farm Bill that would effectively ban most consumable hemp products—a proposal that saw some ideological splintering within the cannabis sector.

Ahead of that vote, WSWA said the “attempt to ban intoxicating hemp products is merely doubling down on the failed federal policy of prohibition.” But in this latest letter, the association used more tempered language. While it said a regulatory framework would be ideal, it also suggested Congress could enact legislation that also allows individual states to ban the products altogether.

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San Francisco buys vodka shots for homeless alcoholics in taxpayer-funded program

The City of San Francisco is providing free beer and vodka shots to homeless alcoholics at taxpayer expense under a little-known pilot program. 

The “Managed Alcohol Program” operated by San Francisco’s Department of Public Health serves regimented doses of alcohol to voluntary participants with alcohol addiction in an effort to keep the homeless off the streets and relieve the city’s emergency services. Experts say the program can save or extend lives, but critics wonder if the government would be better off funding treatment and sobriety programs instead.

“Established in countries such as Canada and Australia, a managed alcohol program is usually administered by a nurse and trained support staff in a facility such as a homeless shelter or a transitional or permanent home, and is one method to minimize harm for those with alcohol use disorder,” the California Health Care Foundation explains in an 2020 article describing the pilot program. 

“By prescribing limited quantities of alcohol, the model aims to prevent potentially life-threatening effects of alcohol withdrawal, such as seizures and injuries.” 

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Tennessee Man’s Illegal Moonshine Operation Yielded 81 Quarts

A man in Johnson City, Tennessee, has been cited after law enforcement found an illegal moonshine operation.

Officials cited 36-year-old Jeremy Stines in the case and WCYB reported Monday that a tip led authorities to discover the operation that was apparently located inside a barn.

In a social media post, the Washington County Sheriff’s Office of Tennessee (WCSO) noted Stines was cited for manufacture of alcoholic beverages, possession of a still, and unlawful storage of liquor for sale.

The sheriff’s office continued:

Upon receiving the tip, Investigators conducted a premise check in the 200 block of Highridge Road. It was disclosed by Stines that there was in fact a still in the yard barn at the east end of the property, and verbal consent was given by Stines to search the building. The liquor manufacturing equipment, along with 81 quarts of product, were seized transported to WCSO.

According to Tennessee Code Annotated § 39-17-707, it is unlawful for any person to have possession or control of any still or other apparatus, or part of a still or other apparatus to be used for the purpose of manufacturing intoxicating liquor as prohibited by law. Possession of a Still is a Class B misdemeanor.

Manufacture of Alcoholic Beverages and Unlawful Storage of Liquor for Sale are both Class A misdemeanors.

Stines is scheduled to appear in court on March 5 regarding the case.

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Connecticut Marijuana Retailers Can Open On Christmas And New Year’s, But Alcohol Stores Must Close

People in Connecticut can’t legally buy alcohol on Christmas or New Year’s Day, the state Department of Consumer Protection reminded residents this week—but cannabis is A-OK.

“If you choose to consume alcohol with your holiday celebrations, be sure to make those purchases ahead of time, and, of course, please drink responsibly,” Department of Consumer Protection (DPC) Commissioner Bryan T. Cafferelli said in a statement on Wednesday. “And, because we regulate many things you may be wondering about, Connecticut Law does not prohibit the sale of cannabis, or limit your ability to place wagers during the holidays.”

“No matter how you choose to spend the holidays,” he added, “please know your limit, arrange designated drivers and be respectful of the establishments and communities where you celebrate.”

On both New Year’s and Christmas Day, state law prohibits package stores from opening, and grocery stores are barred from selling beer. To-go sales of liquor are also banned.

“Hours for cannabis licensees,” said the Department of Consumer Protection, “are unaffected.”

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Marijuana Will Gain Millions Of Consumers Over Alcohol, With Sales Hitting $37 Billion By 2027, Investment Bank Projects

A multinational investment bank says that marijuana has become a “formidable competitor” to alcohol, projecting that nearly 20 million more people will regularly consume cannabis over the next five years as booze loses a couple million drinkers. It also says marijuana sales are estimated to reach $37 billion in 2027 as more state markets come online.

An analysis from the firm TD Cowen says marijuana sales reached $29 billion in 2023, which is approximately 11 percent of what the alcohol industry brought it. That’s up from four percent just five years ago, and marijuana is expected to grow by another seven percent annually over the next five years.

“As such, we believe that over the next 5 years, the cannabis category will add 18 million past-month consumers, while alcohol will lose 2 million past-month consumers, as consumers increasingly embrace cannabis and temper their alcohol consumption,” the report, titled “Cannabis Beats Booze,” says.

Vivien Azer, team lead on the analysis, told Marijuana Moment that the report bolsters a growing body of market research.

“We’ve been calling for seven years now for cannabis to increasingly prove as a dislocator to alcohol sales—and, really, it’s just a matter of time,” she said. However, she said it was “a little surprising” to see data projecting an even greater underperformance for alcohol sales in legal marijuana states.

While marijuana sales are still just a fraction of the dominant alcohol market, analysts say that there’s reason to believe that booze could be “at risk” of declining because of increased substitution among consumers, particularly young people. The TD Cowen report cited a proprietary survey that found more than two-thirds of cannabis users report reducing alcohol consumption.

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Carnival Cruise Lines Denies That Anti-Marijuana Enforcement Measures Are Meant To Boost Alcohol Sales On Ships

Passenger cruise lines like Carnival and Royal Caribbean have policies against marijuana, noting that the substance is illegal in many ports it sails to and that they’re following federal law. But as more people return to the ships, and as more of them come from states where the drug is legal, operators are reportedly taking more extreme measures to detect cannabis and cracking down on people who attempt to use it—including those who simply pack CBD products, which are legal across the U.S.

As the Wall Street Journal reported in a story on the trend this week, Carnival Cruise Lines not only sends pre-cruise messages reminding passengers not to bring marijuana, but also now employs drug-sniffing dogs.

Companies say they’re focused on legal compliance and providing a comfortable experience for non-users, but the article notes that cruise operators may have an ulterior motive to discourage marijuana use.

“Besides limiting potential legal liability, cruise lines could benefit financially by prohibiting cannabis on board,” the paper reported. “Alcohol is a major revenue-generator for ships, and cruises also limit how much booze passengers bring on board.”

It talked to a Florida-based personal-injury attorney who said he’s “convinced that the decision to take such a hard line on marijuana or CBD is because they’re trying to drive alcohol sales.”

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Michigan Marijuana Tax Revenue Grew By 49% Over The Past Year, Surpassing Alcohol Earnings

Sales of legal marijuana in Michigan contributed $266.2 million in tax revenue to the government during the most recent fiscal year, according to a new report from the legislature’s nonpartisan House Fiscal Agency. That’s more than the state made from the sale of beer, wine and liquor combined.

Tax from sales of adult-use cannabis were up 49.1 percent in fiscal year 2022–23, which ended in October, compared to $178.6 million collected the year before. That amounted to an additional $87.6 million in state revenue from cannabis sales compared to the prior 12 months.

Of all the major tax revenues itemized in the House Fiscal Agency report published last week, none grew at a faster rate than cannabis revenue.

Adult-use marijuana products are subject to a 10 percent state excise tax, which accounts for the $266.2 million. Products also incur the state’s standard 6 percent sales tax, which works out to an additional $159.7 million in revenue from legal marijuana transactions.

Looking at the cannabis excise tax alone, marijuana was responsible for nearly 0.8 percent of total state revenue recorded in the annual report. Including sales tax, the share works out to about 1.3 percent of total revenue.

The marijuana excise tax brought in more money for the state last fiscal year than alcohol taxes, which contributed about $192.6 million total—$46.6 million from beer and wine and $146 million from liquor That’s a shift from fiscal 2021–22, when combined alcohol taxes brought in roughly $12.9 million more revenue than cannabis.

By contrast, marijuana revenue amounted to less than half of the $722.2 million Michigan made from tobacco taxes in the most recent fiscal year.

In October 2023 alone, the marijuana excise tax produced $52.4 million in tax revenue—more than any other single source aside from sales and use taxes, income taxes, insurance taxes and tobacco taxes.

Michigan voters approved adult-use marijuana legalization in 2018, with legal sales beginning the next year.

The state has set sales records even as the average cost of marijuana has remained at record lows, with the price of an ounce for adult-use cannabis now hovering around $98 just a few months ago. In December 2021, by contrast, the cost of an ounce was about $180.

Last month, Michigan Gov. Gretchen Whitmer (D) signed a pair of bills into law to allow state-licensed marijuana businesses to conduct trade with tribal cannabis entities. Both took effect immediately.

“The bills are intended to allow for the sale of product between the two types of businesses while maintaining a level playing field by requiring tribal businesses to pay the same tax rate as other businesses,” according to an analysis prepared by House staff.

Michigan is one of several states where cannabis tax has earned more revenue than taxes on alcohol.

During the most recent fiscal year in Illinois, for example, legal cannabis brought in $451.9 million—about $135.6 million more than alcohol.

Colorado last year state generated more income from marijuana than alcohol or cigarettes—and nearly as much as alcohol and tobacco combined.

Similar milestones have been seen in Arizona and Washington State.

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Biden Alcohol Czar Says US May Change Recommendations For How Much Beer Americans Should Drink

A U.S. federal official suggested in a recent interview that Americans may be told by officials that they are recommended to have no more than two alcoholic drinks, or beers, per week.

Director of the National Institute on Alcohol Abuse and Alcoholism (NIAAA) George Koob told the Daily Mail on Thursday that the United States could follow how Canada handles its alcohol guidelines.

The NIAAA’s guidelines currently recommend males up to age 65 limit themselves to two drinks per day, while women up to age 65 should limit themselves to one. Recommendations published under the U.S. Department of Agriculture’s Dietary Guidelines for Americans (pdf), which are not mandates or requirements, are slated to be reviewed in 2025.

For the NIAAA’s “heavy” drinking limits, it says that men should drink no more than four per day, and no more than 14 beverages per week. For women, according to the guidelines, they should drink no more than three drinks per day and seven per week.

Meanwhile, Canada’s current guidelines recommend people have only two drinks per week. A drink is defined as containing 0.6 fluid ounces of alcohol, or equivalent to one beer, one glass of wine with 12 percent alcohol, or one shot of hard alcohol.

“If there’s health benefits, I think people will start to re-evaluate where we’re at [in the U.S.],” Mr. Koob told the Daily Mail.

When asked about whether the guidelines would change in 2025, he said that it’s likely officials will not recommend that people drink more per day or week, as compared with the current guidelines.

“I mean, they’re not going to go up, I’m pretty sure,” Mr. Koob said. “So, if [alcohol consumption guidelines] go in any direction, it would be toward Canada.”

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